Insure

YOU BUY THIS coverage to help pay nursing-home costs. But while nursing-home care is expensive—currently in the neighborhood of $40,000 a year—long-term-care insurance (LTC) is a luxury that only the wealthy can typically afford.

The premiums on a good LTC policy for a 50-year-old man in good health are running about $700 a year—up to $3,000 for the same man at age 70. That's for a policy that would pay a maximum of $100 a day for three years with a Estate Planning 100-day deductible before it kicks in.

Unless you'll sleep better at night knowing you have LTC insurance—and can comfortably afford the premiums—you're better off taking the money you would have spent on this coverage and investing it instead.

MONEY TIP

Sure, insurance policies are confusing and insurance agents don't always spell things out in clear, basic English. Shop for insurance as hard as you awould shop for a car or any other major puchase. Don't pay until everything -- including costs and discounts -- has been made clear to you in language you can understand.

BONUS TIP

How To Save On Any Kind Of Insurance

YOU DON'T WANT to pay full price for insurance. You want to buy the coverage you need at a discount. Ask every insurance company and agent you talk to about the discounts they offer that can cut your insurance bill. Here are some examples:

• Installing dead-bolt locks, smoke detectors and burglar alarms can usually bring discounts of 5% each off your homeowner's premium—as much as 15% or 20% if you install a sophisticated home-security system. There may be a discount if you're near a fire station.

• Having a teenage driver who gets good grades. In fact, good grades usually bring a bigger discount than just having your child take a driver's education course.

• Buying all your coverage from one company.

• Raising your deductible—the money you have to pay before your homeowner's or auto insurance kicks in. You have to decide how much you can afford to fork out if something bad happens. But usually, the higher your deductible, the lower your premiums will be.